I have two BofA charge off one is 4,616 and the other is 5,157 balance. I have been paying them 50.00 on each monthly, started in January before I started reading on this forum again. My car got totaled in an accident with my son. So I have the insurance money that I can use to pay down this debt by 50%. I have called asking for a settlement, but was told there is no settlement offered on my accounts. I would like to get rid of these charge offs. I have 2 other collections on my report to pay, which would be paid in September since my son is now working and can pay his own bills without my assistance. Trying to get a vehicle in January would like these charge off balances to zero. Already got my scores increased by almost 100 points in 8 months. Please help.
Starting Score: 513 Ex 520 Eq 534 Tu
When did those 2 BoAs charge off and did you sign an agreement to that 50.??
They were charged off in 2018. Called over the phone and pay them $50 each a month.
@josie wrote:They were charged off in 2018. Called over the phone and pay them $50 each a month.
Ah ok, they are still with SOL in all states, you would most likely have to cease paying at all for 3-6 months and hope they dont sue before they would give you an offer, I would just pay one of them off in this case and continue working on the other.
@Anonymous wrote:
@josie wrote:I have two BofA charge off one is 4,616 and the other is 5,157 balance. I have been paying them 50.00 on each monthly, started in January before I started reading on this forum again. My car got totaled in an accident with my son. So I have the insurance money that I can use to pay down this debt by 50%. I have called asking for a settlement, but was told there is no settlement offered on my accounts. I would like to get rid of these charge offs. I have 2 other collections on my report to pay, which would be paid in September since my son is now working and can pay his own bills without my assistance. Trying to get a vehicle in January would like these charge off balances to zero. Already got my scores increased by almost 100 points in 8 months. Please help.
I settled about $200K in debt for a good friend and what we found was that all his creditors of accounts that were current were not interested in settlements. Debts that were within 6 months from last payment settled between 30-50% and debts above 6 months sent us to a lawfirm or CA. If you are paying, you have effectively reset your SOL and now they can pursuit you in court (assuming they couldn't before). Send them a letter say you can no longer afford these payments and have some savings you want to use to pay this and offer about 40% of the balance (be exact on your amount and use a number that does not seem calculated) owed. I would for example offer $1796.43 for the first CC and $2,133 for the second one. Say you only recourse other than this might be to default or BK.
Here the letter I used for my friend's case:
Certified Mail Return Receipt Requested
Re: Request Reduction of Debt
To Whom It May Concern:
This letter is written without prejudice, and nothing contained in this letter shall be used against me in any legal proceedings.
This letter is in regard to an account I have with BANK.
My current financial situation has forced me to consult with a bankrupcy attorney and he advised to contact all of my creditors and attempt to settle my debts before formally filing for bankrupcy.
Looking to completely resolve this balance on this account I can provide the sum of $4,986.45 as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due, and you agree to consider the debt paid in full and agree to not take further action to collect on the alleged debt. The payment shall be made in the form of a cashier's check or money order. You agree, in writing, to designate the account as “payment in full” once you are in receipt of the agreed upon payment amount.
This compromise is expressly conditioned upon the payments made in three equal installments with the first payment being received by November 1st.
I’m very thankful for BANK’s willingness to work together with me to come up to a solution to this so our resolution is one that minimizes any potential impact to your institution. Please provide a written settlement offer with the aforementioned terms from an authorized representative on your company letterhead so we can finalize this agreement.
Please forward your agreement to the address listed below at your earliest convenience, as I look forward to resolving this matter quickly.
Sincerely,
That seems risky. OP could get their bluff called and still get sued.
@josie @gdale6 Bank of America, from what I've seen, is typically one of the easiest creditors to deal with regarding settlements on charged off accounts. @josie are you making your payments directly to BofA and is the account still held with and owned by BofA? If so, I'd be a bit more persistent.
Also, keep in mind that when you started making WILLING (not as a result of garnishement, etc) payments to BofA, it reset the SOL. This is the exact reason why, espeically when getting close to the expiration of the SOL for a particular account, the creditor/collector is very eager to get any type of payment arrangement set up. I've even seen where a consumer agreed to a payment arrangement via ACH, the payment didn't clear, but simply by the verbal recorded agreement, the SOL was reset and the creditor used that later on to gain a successful judgment against the debtor beyond the INITIAL SOL.
Remember, this forum is full of many knowledgable individuals who have a true passion for helping others, but please verify anything you get from anyone on here before proceeding. Keep in mind, even with good intentions, the people giving you advice/techniques don't suffer if it negatively effects you as a result.
Best of luck and great job so far on the 100 point increase!
@DebtStinks wrote:@josie @gdale6 Bank of America, from what I've seen, is typically one of the easiest creditors to deal with regarding settlements on charged off accounts. @josie are you making your payments directly to BofA and is the account still held with and owned by BofA? If so, I'd be a bit more persistent.
Also, keep in mind that when you started making WILLING (not as a result of garnishement, etc) payments to BofA, it reset the SOL.
Maybe in your state but its not true for ALL states, one needs to look in their state laws to see what resets it.